SEBI establishes CLA

MUMBAI APRIL 9. The Securities and Exchange Board of India has established Central Listing Authority (CLA) under Regulation 3 of the Securities and Exchange Board of India (Central Listing Authority) Regulation, 2003. The SEBI has been envisaging the setting up of a CLA to bring about uniformity in the due diligence process in scrutinising listing applications across stock exchanges and to dynamise the Listing Agreement.

According to the regulations, the CLA will discharge the functions of processing applications, made by any corporate, mutual fund or collective investment scheme for a letter of listing on a stock exchange, making recommendations for listing and any other function as may be specified by the board from time to time.

Nor corporate or mutual fund or collective investment scheme shall make an application for listing of its securities to a recognised stock exchange unless it has obtained a letter of recommendation for listing from the CLA; neither shall any exchange consider any listing application from any of the above mentioned entities unless it is accompanied by a letter of recommendation from the CLA.

The office of the CLA would be in Mumbai and Justice M. N. Venkatachelliah, former Chief Justice of India, will be the President of CLA. The President and Members will hold office for a term of three years.